Insurance is as important to small businesses as it is to corporations. With all the focus on how to make the business work, other important factors can fall through the cracks and that is why it is important to pay attention to the ABC of insurance for small businesses.
Starting a business can be challenging at the best of times, from securing funding to identifying potential collaborators and clients. There are many obstacles to overcome on the road to successful entrepreneurship.
While new business owners tend to prioritize growth strategies, they often fail to focus on the ‘what if?’ factors, facing potential risks that the company may experience down the line.
While business owners in high-risk industries, such as trucking, tend to be more aware of the need for a curated cover due to the transit of valuable goods, other entrepreneurs often make the mistake of underestimating the risk factors that can be brought to their operations.
This leaves them vulnerable to potentially devastating losses, said Jason Mellow, head of MiWay Business Insurance.
“Given the current economic climate and the ever-increasing overhead, businesses and SMEs in particular, cannot function without the right insurance coverage. And given the variety of business insurance options now available to would-be entrepreneurs, there is no reason to run the risk that’s unnecessary,” he said.
Many entrepreneurs only become aware of potential risk factors when it is too late, but when a business, such as a beauty salon, may not be at risk, this is not always the case. Accidents can happen anywhere and you can be held liable for significant damages that your business cannot afford.
Mellow encourages small business owners to consider these commercial insurance solutions based on the nature of their business:
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Insurance for beauty salon owners
It’s summer and that means hair and beauty salons are usually booked well in advance. However, this financial boom can be a serious risk if your equipment is not properly insured. It is very important for small business owners in the beauty industry to ensure that their machines are covered and specified in the insurance contract so that you can replace them quickly without hindering the delivery of services.
Mellow said it would also be a good idea to invest in responsibility to protect interests in the event of third-party claims, which may arise if a customer or staff member is injured on the premises or as a result of the business offering.
“You should also remember that if you use one or more vehicles for business purposes, even if it is your personal car, it should be covered and specified under your commercial insurance policy.”
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Insurance for restaurant owners
The restaurant industry is also growing and is usually characterized by increased numbers. However, the anticipated profits from the bumper festive season can go up in smoke if you don’t take the necessary precautions beforehand.
In this case, your equipment is also key to ensuring that you can meet the increased demand and you should ensure that all your vehicles, ovens and other specialist machinery are covered by your insurance policy.
Business Property Insurance is also necessary for restaurant owners, as it provides coverage not only for your space, but also for your equipment in case of damage, theft, fire, burst pipe or natural disaster, Mellow said.
You should also consider adding Emergency Assistance which gives you the option to call specialists such as locksmiths, plumbers and security guards if something goes wrong. And with load shedding likely to continue in the future, you may want to look at Stock Insurance, which gives you recourse in the event of raw materials being damaged due to power surges and cuts.
“Like our customer-facing colleagues, restaurant owners are also advised to ensure that they have some form of liability to protect themselves from claims arising from unforeseen hazards.”
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Insurance for builders
Small businesses that run mobile operations such as electricians, glaziers or plumbers are usually more at risk because they spend a lot of time on the road. When this operation expands, it is important to ensure that the cover in place remains complete, especially when several vehicles are used every day, said Mellow.
If, for example, you register one regular driver for a vehicle but you start to expand your operation and now have many drivers behind the wheel, you may find yourself in difficulty when it comes to claims, because your monthly premium does not reflect accurately. risk factors.
In this case, says Mellow, it is better to choose the Multiple Driver cover option, which allows up to five people to be registered as regular drivers in the same vehicle, or Driver Pool Insurance, which offers greater flexibility and does not. does not require you to determine who is behind the wheel at any time. The Driver Pool option is more flexible but means a higher premium to cover this increased risk.
He added that Employer’s Liability Cover is necessary for employers who manage a mobile workforce, as it provides protection and peace of mind if an employee is injured for any reason on the job, whether due to a dog bite or an unexpected fall.
There is also Broadform Liability, which protects you against various incidents such as general liability, work defects or accidental damage to customer property and Mellow says this is also highly recommended in this case.
“It doesn’t matter what your industry is or the size of your business, insurance is important and not knowing your insurance can hurt your business if something happens. So, if you’re starting a new business or want to expand your existing business, protect your hard-earned business with consult with your insurance company to better understand your risk profile and make adequate provisions for possible contingencies.